Initial Commentary on Ramah Oral Argument

A few quick comments about today’s argument. Know that I’m reading a cold transcript. All the “laughter” indicators suggest today’s argument was a jolly one.

Justices Sotomayor, Ginsburg, and Kagan asked the majority of questions, and their questions suggested some sympathy with the tribal position. Chief Justice Roberts, and Justices Kennedy, Scalia, and Breyer participated as well. Justices Alito and, as is his custom, Thomas asked no questions. If the questions were any indicator, I’d say there may be no more than three votes for the tribal position.

This is a complex, technical question that I find difficult to sort out. On one hand, the tribal interests wish to access Congress’s judgment fund in cases where a self-determination act contract is breached in that Congress has not appropriated enough funds to cover the costs of the contract. If there were a trial, tribal interests hope to prove that the Department of Interior’s practice of allocating these costs to individual tribes is arbitrary and capricious, but they cannot do that since this case comes to the Court on summary judgment.

On the other hand, the government reads the appropriations cap as an absolute bar to accessing the judgment fund, and moreover that this isn’t a contract breach case at all. The government’s briefing suggests a constitutional bar, but that question never seemed to have much salience on the argument.

Justice Scalia’s questioning suggested that a Congressional spending cap is absolute, and controls the outcome. If so, then the contract breach theory probably dissolves, and the access to the judgment fund goes with it. There may be some play in how the government allocates the money under the spending cap, but that will just put tribes against each other and the Department of Interior.

The tribal interests face a plain language problem, and Carter Phillips effort to rely on the Redbook promulgated by the Comptroller that basically says, “Don’t worry, federal contractors, everyone’s going to get paid even with a spending cap,” seemed to fall flat. Indian tribes as contractors are different because the government cannot cancel those contracts (and the history of tribal-federal relations that informs this arrangement is irrelevant to the Court).

I find it interesting and a bit unfortunate that the government and a majority(?) of the Court are willing to apply rules that are detrimental to Indian tribes because of their unique status and that of the statutory framework that applies to them. Justice Sotomayor’s questions suggest she shares that concern. I do not believe that special rules unique to tribal interests that benefit those tribes would withstand scrutiny by the Court, although we haven’t seen anything like that reach the Court lately.

SCOTUSBlog (Lyle Dennison) Preview of Salazar v. Ramah

Here.

An excerpt:

Going into the oral argument, the tribes may well have at least a small advantage in that their argument amounts to three simple propositions: what is at stake is a matter of simple fairness in living up to one’s promises, the government’s ineptness in managing its money deserves no sympathy, and both antique and recent precedent clearly control the outcome. That may stack up well against the government’s rather complex effort to draw a clear distinction between the Cherokee Nation precedent and this new case, its fairly dismissive treatment of the Judgment Fund as a source of funds for the tribes’ claims, and its studied effort to treat the old 1892 precedent in the Ferris case as a matter deserving of little notice and not much argument.

The Court is often seen as quite sympathetic to the plight of Indian tribes, and that can add an emotional factor to any case involving tribal rights. But here, the tribes’ usual, quite zealous protectors — the Interior Department and its Bureau of Indian Affairs — are on the other side, and they are making an argument that their overall obligations to care for the tribes’ interests should not be sacrificed to a legal duty to pay for administrative costs, especially in the face of Congress’s continuing skepticism about those costs.

If the Court is drawn mainly to the constitutional issue that the government has sought to make so prominent, that could work to the government’s considerable advantage. Congress since 1994 has left no doubt that it intended to curb what the Interior Department could spend on a very specific item, and that is difficult to argue around. If the Court is sensitive to separation of powers concerns in this case, and it presumably is always sensitive to that core constitutional concept, it may not want to be seen as second-guessing the lawmakers’ primacy in overseeing the federal Treasury. In this respect, the tribes’ effort to play down the significance of the language used to impose spending caps appeared to be a bit strained.

The tribes’ reliance on the Cherokee Nation precedent has some surface appeal, but, on closer examination, it does not seem to be as clear cut as the tribes would prefer. The lower courts have not been of one mind on its impact, and that no doubt will be noticed by the Justices.

Federal Government Trust Management Settlement with 41 Tribes Announced

ATTORNEY GENERAL HOLDER AND SECRETARY SALAZAR ANNOUNCE $1 BILLION SETTLEMENT

OF TRIBAL TRUST ACCOUNTING AND MANAGEMENT LAWSUITS FILED BY MORE THAN 40 TRIBES

WASHINGTON – Attorney General Eric Holder and Secretary of the Interior Ken Salazar today announced the settlement of lawsuits filed by 41 federally-recognized tribes against the United States, in which the tribes alleged that the Department of the Interior and the Department of the Treasury had mismanaged monetary assets and natural resources held in trust by the United States for the benefit of the tribes.  The announcement followed a 22-month-long negotiation between the tribes and the United States that has culminated in settlements between the government and tribes totaling more than $1 billion.

These settlements resolve claims dating back more than 100 years and will bring to an end protracted litigation that has burdened both the plaintiffs and the United States.  Ending these long-running disputes about the United States’ management of trust funds and non-monetary trust resources will allow the United States and the tribes to move beyond the distrust exacerbated by years of litigation.  These settlement agreements represent a significant milestone in the improvement of the United States’ relationship with Indian tribes.

“These settlements fairly and honorably resolve historical grievances over the accounting and management of tribal trust funds, trust lands and other non-monetary trust resources that, for far too long, have been a source of conflict between Indian tribes and the United States,” said Attorney General Holder.  “Our commitment to tribes is the cornerstone of the Department of Justice’s policies and initiatives in Indian Country, and these settlements will enable the tribal community to pursue the goals and objectives they deem to be appropriate while marking another step in our shared future built upon mutual respect and strong bonds of trust between tribal governments and the United States.”

“These important settlements reflect President Obama’s continuing commitment to ensuring empowerment and reconciliation for American Indians,” said Secretary Salazar.  “It strengthens the government-to-government relationship with Tribal nations, helps restore a positive working relationship with Indian Country leaders and empowers American Indian communities.  I want to commend Attorney General Holder, our Interior Solicitor Hilary Tompkins and other key officials who were involved in the long negotiations leading to these historic agreements.  I look forward to working with Tribal leaders to further strengthen our government-to-government relationship based on mutual respect and a shared concern for the proper management of tribal trust assets and funds.”

Continue reading

Eighth Circuit Rejects Effort to Move Trust Breach Claims to Court of Federal Claims

Here is today’s opinion (the third Indian law opinion from the CA8 this week!) in Bernard v. Dept. of Interior:

CA8 Opinion in Bernard v DOI

The briefs:

Bernard Opening Brief

Interior Appellee Brief

Bernard Reply

Excerpts:

Maynard Bernard decided to develop some of the Indian trust land he owned on the Sisseton Wahpeton Reservation in a project planned with his cousin Grady Renville. Bernard and Renville consulted a Bureau of Indian Affairs (BIA) realty officer about how to proceed. She advised Bernard to sign a gift deed to convey the entire property to himself and Renville asjoint tenants with the right of survivorship.  The agency subsequently denied a request by Bernard and his wife Florine to set aside the deed. After an unsuccessful administrative appeal the Bernards brought an action in federal district court against the United States Department of the Interior (the Department) seeking review of the agency  decision and money damages for breach of trust. The Bernards later amended their complaint to eliminate the damage
claim and subsequently settled with Renville, who agreed to deed back some of the land. After the district court affirmed the administrative decision and dismissed the Bernards’ action, they moved to alter the judgment, seeking transfer of their damage claim to the Court of Federal Claims (CFC). The district court denied the motion, and the Bernards appeal. We affirm.

And:

We recognize that the facts of this case are troubling. Apparently on her own initiative, the BIA realty officer advised Bernard to sign a gift deed conveying half of his interest in his entire property to Renville in a joint tenancy with the right of survivorship. In addition she told Bernard that this would be only a “temporary” arrangement based on Renville’s alleged oral assurances, and she permitted Bernard to waive appraisal of his land before the transfer. She also allowed Renville to fill out the gift deed application, apparently because Bernard’s eyesight was so bad he could not do it himself.

Federal Court Dismisses Trust Breach Claim by Osage Headright Beneficiaries

Here are the materials in Fletcher v. United States (N.D. Okla.):

DCT Order Dismissing Third Amended Complaint

USA Motion to Dismiss

Fletcher Opposition

USA Reply

Our prior post on this case (from 2009) is here.

Federal Court Decides “Old Section 81” Case — Quantum Enter. v. Interior

Here are the materials in Quantum Entertainment Ltd. v. Dept. of Interior (D. D.C.):

Quantum Entertainment Complaint

Exhibits

Interior Motion for Summary Judgment

Quantum Motion for Summary Judgment

DCT Order Affirming IBIA Decision

Amicus Briefs Supporting Respondent in Salazar v. Ramah Navajo Chapter

Here:

11-551 Amicus Chamber of Commerce

11-551 Ramah Amicus National Congress of American Indians et al

No. 11-551 Arctic Amicus in Ramah 3-26-12

Respondent Brief in Salazar v. Ramah Navajo Chapter

Here:

Ramah Brief

Colette Routel and Jeffrey Holth have posted a paper on tribal consultation on SSRN

It looks like an interesting and valuable piece. Here’s the abstract, and the full paper can be downloaded here.

“The tribal right to consultation requires the federal government to consult with Indian tribes prior to the approval of any federal project, regulation, or agency policy. This article, which provides the first comprehensive analysis of this right, highlights the current inconsistencies in interpretation and application of the consultation duty. It then attempts to provide suggestions for changes that can be implemented by the legislative, executive or judicial branches.

In Part I, we provide a brief overview of the development of the trust responsibility and explain how it came to include three substantive duties: to provide services to tribal members, to protect tribal sovereignty, and to protect tribal resources. In Part II, we offer the first detailed explanation of how the trust responsibility developed the procedural duty to consult with Indian tribes. In this section we also discuss recent attempts by the Obama Administration to reform the federal government’s consultation duty. In Part III, we analyze the consultation policies that have been developed by federal agencies. In doing so, we identify four flaws that have prevented these policies from being truly effective: lack of enforceability, specificity, uniformity, and substantive constraints. Finally, in Part IV we present our proposal for reforming the consultation duty through legislation, and offer suggestions that can be implemented by the judicial and executive branches in the interim. “

Oral Argument Transcript in Craven Appeal of Cobell Settlement

Here.

This line from Judge Tatel to Craven’s attorney early in the argument must have the appellees concerned:

you sold me, you have a good case [page 4, lines 21-22]